Day 4 - Overidentification Test

Goals

The goals for this day are to finish coding up the SMM estimator, run it, and also perform the test of overidentifying restrictions and counterfactual analyses. The deliverables are:

  • SMM estimator
  • Compute your final parameter estimates and their standard errors. Do they make sense?
  • How well does the model fit the data? Compare the simulated and empirical moments.
  • Does the model fail the test of overidnentifying restrictions?
  • What would be an interesting counterfactual experiment to run? How would you do it?

Standard Errors

Overidentification Test

Model Fit

Counterfactuals